The dos and don’ts of investing in property with super

The proportion of investment properties owned by self managed super funds (SMSFs) is growing on a national basis, with the comparatively low risk nature of residential property appealing to those taking control of their own retirement. However, investing in the right property is crucial as poor selection now may negatively impact the SMSF’s performance down the track – when it’s most important.

 

Self managed super funds are becoming increasingly large owners of investment properties nationally and when used correctly, are effective vehicles for people to build an investment property portfolio for a secure retirement.

The access to reliable returns and long term capital growth opportunities with less volatility are particularly attractive factors for SMSFs.

 

However, to achieve the long term performance that SMSFs require from investment property, a meticulous due diligence regime must be applied prior to purchase. Poor property selection not only results in poor investment performance, but also jeopardises the retirement of those relying on the SMSF.

 

Investors often fail to consider the full range of factors that can determine the long term success – or failure – of an investment property purchase.

Failure to conduct the appropriate level of due diligence is generally not deliberate, but is more likely a result of the investor being time poor. Nevertheless, analysing the potential for an investment property to perform over the long term requires careful consideration of a broad range of influences, some obvious and some less so.

 

The location, maintenance requirements, amenity provided and the amount of outgoings are all obvious factors to consider, but these are only scratching the surface.

 

Future employment forecasts in the area, the level of forecast infrastructure spending, the track record of the developer and the prevailing demographic of the local market are all factors that can influence the long term performance of a property investment. However these examples, and many more, are habitually overlooked by investors.

 

Security should be the main priority and most important consideration for any SMSF and only through extensive research and an unwillingness to compromise will an investment property purchase deliver the level of long term security required.

 

Enter Aviate Group - our Partners in property Investment.....Aviate Group advocates a security first approach to property investment and the unique 32 point investment criteria that it applies to every property it investigates on behalf of its investors ensures their risk is mitigated.

 

To benefit from the industry’s most discerning and comprehensive approach to residential property investment, contact Aviate Group on (02) 9331 5577 or visit www.aviategroup.com.au .

 

About Aviate Group
Established in 2001, Aviate Group is one of Australia’s leading and most experienced property research and investment firms, occupying a niche position in the residential investment market.

 

Aviate recognises that a residential property investment is made for the long term. As such Aviate takes a long term view itself. The company specialises in sourcing superior quality, low to medium density residential developments for investors to enjoy strong, reliable returns and long term capital growth opportunities. The company operates with strict independence and with full transparency, working on a flat rate basis and disclosing all fees up front.

 

Aviate takes the uncertainty out of finding the right investment property and provides a complete end-to-end solution for investors. From initial inquiry though to independent market based valuation, acquisition at or below this valuation, settlement, tenant attraction and beyond, Aviate steers clients through the entire process. Its track record of satisfied clients and the long term alliances it has forged demonstrate its discerning, transparent approach.

 

Aviate is uncompromising in its research and due diligence. Its unique and stringent 32 point investment criteria – comprising 108 sub-points – effectively mitigates risk to ensure Aviate’s investors and alliances benefit from the industry’s most secure, discerning and responsible investment approach.

Posted in: Property investment

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